Mexico’s gas dependence on US pushes politicians to consider fracking

Mexico’s new president Andres Manuel Lopez Obrador, popularly known as AMLO, has said there will be no fracking during his six-year term, igniting a debate about Mexico’s energy security amid rising gas consumption. But mixed signals on the issue have emerged from elsewhere in the government. So what is all the fuss about? Saying no to fracking will mean leaving more than half of Mexico’s total natural gas reserves in the ground. This could be risky for Mexico, since the country’s natural gas production has fallen dramatically in recent years, descending to 2.6-2.7 Bcf/d in 2018 from a historical high of 5.1 Bcf/d in 2010, according to S&P Global Platts Analytics. The decline in production coincided with rising domestic gas consumption off the back of growing gas-fired power generation, new factories, and favorable gas prices in the US. This combination of factors has caused a rapid increase in natural gas imports from the US through pipelines and as LNG. Mexico’s gas imports now account for more than 70% of  total demand. Pipeline flows amounted to around 4.2-4.5 Bcf/d in 2018, but insufficient pipeline infrastructure amid surging demand has led Mexico to become the second-largest buyer of US LNG, taking  around 19%… continue reading

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Source: CTRM Center

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